Cars Will Noticeably Rise In Price Already In 2020

From January 1, 2020, the recycling fee for cars in Russia may significantly increase. The increased tariffs will have to compensate for the September decrease in import duties on imported cars and keep the load on imports at the level of 30%, writes Kommersant. In the passenger car segment, the rate is expected to rise by 110%.

For the first time, waste collection appeared in Russia in 2012. Carmakers have always considered it to be a compensation for the reduction in customs duties after Russia joined the WTO. At first, only auto importers paid it, but in 2014 local manufacturers also fell under its influence. For those of them who signed the industrial assembly agreement, the Ministry of Industry and Trade reimbursed part of the costs. In 2016, the scrappage rate increased by 65%, in 2018 by another 15% on average, and for some items it doubled. At the same time, prices for cars also increased.

Calculations of the new rates of waste collection should be assessed by the Federal Customs Service, as they affect another barrier to imports - excise. It is calculated depending on the engine power of the machine. The final decision on the growth of rates can be made in December. Experts predict that due to new scrappage fees in 2020, manufacturers will gradually raise car prices - by about 2-4%.